Cpf special account

[BBCWatcher]

I got my own CPF statement to show to myself it is correct strategy or not. I am just sharing my own experience. If readers think this is wrong strategy they can don't follow. But your style is like this is wrong strategy. If you think is wrong then don't follow it is that simple.

I don't know if you have the correct investment strategy or not (fund choices, portfolio allocations, etc.), but the tactics you just described violate the whole core value proposition of dollar cost averaging (DCA). "OMG the price is down, I need to bail NOW!" is exactly what you don't want to do if you're DCA'ing. It means you're not DCA'ing, fundamentally. It tautologically means you would buy more shares at higher prices and fewer shares (or zero shares) at lower prices. And that's not helpful.

 

[sohguanh]

When one grow older the contribution for SA will increase and OA will decrease. So in a bull market you find it hard to invest as your OA shrink and SA go up. Ideally SA 4% is very good but as I say always look for lobang that can beat the 4% since now your every month SA has much more monies.

My strategy for me I think it works becuz now I cannot top up my SA as reach limit. CPF count your SA investment also for which I find this out this year. I even write to CPF my CPF balance not show reach why block me from top up. They then reply me they also factor in my outside SA investment monies.

 

[endlssorrow]

Asking now coz US market is down abit
If lump sum into correct funds which is managed by insurance company like axa, great eastern, etc maybe in 3-5 years time return can win SA interests itself?

 

[sohguanh]

Asking now coz US market is down abit
If lump sum into correct funds which is managed by insurance company like axa, great eastern, etc maybe in 3-5 years time return can win SA interests itself?

You are saying instead of use X dollars put into SA to earn 4%, you intend to use that X dollars buy funds is it? Then it depend what kind of funds. For fixed income, low risk funds I doubt their return can be as good as 4%. If you want to beat the SA 4%, you need to be riskier and go into equities fund but equities fund really is volatile so you make your judgement call. 3-5 years time I also not sure if US market recover already maybe will? Hmmm

 

[BBCWatcher]

When one grow older the contribution for SA will increase and OA will decrease.

Yes, I'm with you so far...

So in a bull market you find it hard to invest as your OA shrink and SA go up.

I've just lost you. What also tends to happen as you age is that your income goes up as you progress in your career. (OK, not necessarily, and not necessarily in a straight line, but we're talking averages here.) Also what tends to happen is that your MA reaches the Basic Healthcare Sum and your SA the Full Retirement Sum, meaning the MA portion of your compulsory contributions bounces into your OA. And all of that means you should be able to increase your monthly (or quarterly) savings/long-term investment flow as you age, other things being equal.

As far as whether it's a bull market or not, that doesn't depend on your age. Bull markets could start when you're age 23, 29, 34, 42, and 51 or when you're 26, 32, 48, and 54. You just don't know, and you won't really know except with hindsight.

Ideally SA 4% is very good but as I say always look for lobang that can beat the 4% since now your every month SA has much more monies.

Among the investment choices that the CPF Investment Scheme (SA) offers. There aren't many! I happen to agree with the consensus that you just take the 4.0% offer as-is, count it as part of your "bond/bond-like" allocation, and call it a day. I don't think it's worth using those particular dollars to chase something else.

My strategy for me I think it works becuz now I cannot top up my SA as reach limit. CPF count your SA investment also for which I find this out this year. I even write to CPF my CPF balance not show reach why block me from top up. They then reply me they also factor in my outside SA investment monies.

Yes, the Full Retirement Sum (and thus SA top up limit) is computed based on your SA balance plus SA withdrawals for the CPFIS(SA).

 

[sohguanh]

Among the investment choices that the CPF Investment Scheme (SA) offers. There aren't many! I happen to agree with the consensus that you just take the 4.0% offer as-is, count it as part of your "bond/bond-like" allocation, and call it a day. I don't think it's worth using those particular dollars to chase something else.

Aren't many but not zero. Perhaps you did not research hard enough. But knowing your style you always think yours is correct so then do it your own way. I repeat I am just sharing my own experience to other readers. They happy they follow they not happy can just skip my post.

 

[BBCWatcher]

Asking now coz US market is down abit
If lump sum into correct funds which is managed by insurance company like axa, great eastern, etc maybe in 3-5 years time return can win SA interests itself?

Would you nominate a specific fund, please? Here's the list. Click on "List A UTs" (for unit trusts) or "List A ILPs" (for investment-linked plans), pick a fund that's listed as CPFIS OA & SA (since you're talking about SA dollars), and let us know what specific fund you've nominated. Then we can offer opinions.

 

[BBCWatcher]

Aren't many but not zero. Perhaps you did not research hard enough. But knowing your style you always think yours is correct so then do it your own way. I repeat I am just sharing my own experience to other readers. They happy they follow they not happy can just skip my post.

Um, obviously I'm aware of them. See what I just posted?

 

[dork32]

When one grow older the contribution for SA will increase and OA will decrease.

maybe you not so old yet.

when one grow older,contribution to sa and oa will decrease. when you are old enuf

 

[sohguanh]

maybe you not so old yet.

when one grow older,contribution to sa and oa will decrease. when you are old enuf

I hope to retire and stop working at age 55 so maybe won't get to see decrease sa and oa from contribution.

 

[dork32]

I hope to retire and stop working at age 55 so maybe won't get to see decrease sa and oa from contribution.

then you should say when i grow older towards 55 and not one grow older

 

[sohguanh]

then you should say when i grow older towards 55 and not one grow older

Ok you are correct there. Will take note in future to be more specific.

 

[endlssorrow]

Many agents eye my SA lei
Inside got 6 figure .. keep telling me put money $40k can liao

 

[sohguanh]

Many agents eye my SA lei
Inside got 6 figure .. keep telling me put money $40k can liao

Can you share are you over 55 years already? If not yet then same as me. Now market is very bad take SA out to get better than 4% a bit hard to attain. In a bull market no issue as I did that too.

 

[reddevil0728]

Many agents eye my SA lei
Inside got 6 figure .. keep telling me put money $40k can liao

6 figure can be 100k. Not much Ma.
May not even be FRS

 

[andyhtc]

Many agents eye my SA lei
Inside got 6 figure .. keep telling me put money $40k can liao

I tell my insurance agents that my priority is to pay off my housing loan rather than buying investment-related policies. It is not good to buy these long-term policies anymore once we hit the 50s because the breakeven period is typically 15 years.

 

[dork32]

Many agents eye my SA lei
Inside got 6 figure .. keep telling me put money $40k can liao

wah lau, you 16 years old is it? you dont know these agents?

you invest your cpf with them. they get commission. you dont, they dont

you win money with the investment, they come back to you to ask you to invest more, so that they can earn more.

you lose money, they keep your commission and disappear.

 

[dork32]

It is not good to buy these long-term policies anymore once we hit the 50s because the breakeven period is typically 15 years.

you invest to break even? you take 15 years to break even? have you tried khong guan biskuit tin or pillow case? you break even immediately

 

[reddevil0728]

you invest to break even? you take 15 years to break even? have you tried khong guan biskuit tin or pillow case? you break even immediately

Khong Guan biscuit tin might in fact literally break

 

[endlssorrow]

Can you share are you over 55 years already? If not yet then same as me. Now market is very bad take SA out to get better than 4% a bit hard to attain. In a bull market no issue as I did that too.

Not yet 55

hehe